Azernews.Az

By Mushvig Mehdiyev

The National Statistics Service of Armenia has recorded drop in the amount of foreign investments raised in the country in 2014 in its report released in September.

About $116.5 million has been invested in Armenia in the first six months of 2014 as compared to $293.1 million attracted in the same period of the last year.

This year the Statistics Service avoided any figures in comparison, which analysts believe the move to target concealing the sharp decline in foreign investments.

"The volume of the investments in Armenian economy is unsatisfactory. The problem is not linked to technical issues or lack of qualified managers, but is connected to the absence of government's will to provide security and favorable conditions, at least a minimum profitability for investments. Armenia needs security guarantee at a high level instead of redecorating actions," Member of Parliament Mikayel Melkumyan said on September 23.

Armenian economy sees no foreign investment due to bureaucratic barriers and non-transparent regulations, according to the 2014 Index of Economic Freedom.

The economic crisis in Armenia continues to trigger various challenges facing the country.

"Absence of the guarantee for investments in Armenian economy and unfavorable conditions for their profitability are the key reasons of the country's unattractive economic image," Melkumyan noted.

Melkumyan went on saying that the businessmen don't hurry to invest in Armenian economy due to the presence of monopolists, unhealthy competitiveness, unfair judicial system.

Economic slump in the post-Soviet state has taken its toll on several fields including domestic markets, inflation, unemployment, emigration and others.

The Global Competitiveness Report 2014-2015 of the World Economic Forum ranked Armenia 85th among 144 countries for the competitiveness in the economy. Lack of progress in many fields in Armenia discourages the investors to enter the country's markets. That is proven by Armenia's 121st position for the procurement of advanced technologies and 100th position for innovation potential in the same report.

Widespread monopoly mostly controlled by the oligarchs in Armenia fetched 105th position among 144 countries in the effectiveness of antitrust policy as reported by Global Competitiveness Report 2014-2015 .

The Doing Business 2014 data for Armenia by the World Bank Group ranks the country 117th among 189 countries for trading across borders, while 112 for enforcing the signed contracts.